Export subsidies good and bad points?

Question

EXPORT SUBSIDIES

Governments provide various forms of financial assistance that benefit their exporters for example they give taxpayers money to give low interest loans to exports or their foreign customers.

Good and bad points?

Answer 1

Good points - you increase exports, create more jobs, others are doing it.

Bad points - your trading partners won't like it and may put tariffs on to protect their industry. They may start their own subsidies, and start hurting you.

You will be subsidising many poor quality exporters and once you start, it is very hard to stop as you will be shutting down businesses.

You are providing goods cheaper to foreigners and increasing your overall tax levels.